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How to improve your finances in 2021

Make New Year’s resolutions that can improve your financial health.

The top New Year’s resolutions when it comes to money are reducing debt, raising credit scores and increasing savings. So how can you make those resolutions work? 

Let’s connect the dots.

Saving money, new bank

First, when it comes to your savings, financial experts say you should tackle putting money aside before your other resolutions. 

While paying off debt and increasing your credit score are important, if the unexpected happens, you will need that cushion. Experts recommend setting up a savings account at a different bank than your checking account and set up automatic payments, even if it’s a few dollars each paycheck.

credit score keep unused accounts When it comes to raising your credits score paying off your debt is important but not the only factor. Paying bills on time also helps… set up automatic payments to make sure you don’t miss deadlines. You may be tempted to close unused credit cards… but that can hurt your score. Keep the account but cut up the card so you won’t be tempted.

{credit cards more than minimum} When it comes to paying off those cards and reducing debt… always pay more than the minimum payment… even if you can only afford a few dollars more. The minimum payment will mean you are still accruing interest every month…. And that adds up over time. It will lead to an even bigger balance that will be even harder to pay off.